KARACHI: The Hub Power Company Limited (Hubco) announced results for the fiscal year 2012-13 on Monday, reporting net profit after tax (PAT) at Rs9.4 billion on unconsolidated basis, which translated into earnings per share (eps) of Rs8.11.
The company also announced final cash dividend at Rs4.50 per share with the results, taking cumulative payout to Rs8 per share.
The market viewed the payout as higher-than-expected and was warmly greeted by the investors who carried the price of Hubco stock up by Rs2.29 to Rs71.61.
Regarding the results, analysts at AHL Research said that the earnings were quite close to their expectation of Rs8.57 per share. On sequential basis net profit stood at Rs2bn (eps: Rs1.72).
“As discussed in our result preview, decrease of 8pc year on year in finance cost along with 8pc depreciation in dollar/rupee parity has proved major trigger for 15pc YoY growth in net profitability.”
Analysts at Sherman Securities said Hubco announced FY13 consolidated eps at Rs8.72, up by 18 per cent over the eps at Rs7.42 in the corresponding period of the earlier year.
Higher earnings were attributed to better returns from Narowal power plant, new hydro power plant and depreciation of the local currency against the dollar.
Analysts said the company’s base plant and Narowal plant contributed earnings of Rs8.11, higher earnings from new Laraib Energy’s hydro plant (Hubco’s subsidiary), which was commissioned on March 23, 2013, contributed eps of Rs0.61 in the company's overall FY13 profitability.
Pak Suzuki Motor Co
PSMC also announced results, posting 1H2013 eps at Rs14.05 which was lower by 16pc against eps at Rs16.64 in the same period of the last year.
However, company’s profitability in 2Q2013 increased by 119pc QoQ to Rs433 million.
Analyst Mohammad Tahir Saeed at Topline Securities stated that the decline in 1H2013 earnings was primarily attributable to 33pc decrease in volumetric sales from 61,439 in 1HCY12 to 41,326 in 1HCY13.
The fall was due to the absence of Taxi scheme and discontinuation of Alto cars.
As a result, the company’s revenue decreased by 26pc to 26.9bn in 1HCY13 from 36.5bn in 1HCY12.
The analysts observed that the depreciation of Japanese Yen resulted in low cost of imports in the later part of 1H2013, but the inability to timely pass on rising cost pressures resulted in deteriorating gross margins to 5.9pc, down by 31 bps over the 1HCY12.
However, support to the profit was provided by one-time gain on sale of old motorcycle plant that fetched Rs3.3 per share in 2Q2013, which raised company’s 'other income' by 70pc to Rs564m.
Alone in 2Q2013, the company reported heavy growth in eps to Rs9.65 compared to eps at Rs4.40 in 1Q2013, up 119pc QoQ. Though sales during the period declined by 4pc which pressed revenues down by 2.4pc during 2Q2013, gross margins improved during the quarter due to Yen depreciation. Gross margin in 2Q2013 was at 7pc compared to 4.7pc in the earlier quarter.
